SB3346 Summary

• Creates new Section 20.5 allowing credit union boards to appoint one or more associate directors in advisory capacity, who cannot vote, cannot be delegated board duties, and must sign confidentiality agreements.

• Modifies director and committee compensation rules to require written board policies and allows the Department to address safety and soundness issues following established regulatory procedures, removing the previous rule-making authority for maximum compensation rates.

• Increases lending limits to credit union organizations from 3% to 6% of unimpaired capital and surplus, and increases investment limits in Credit Union Service Organizations from 3% to 6%.

• Allows board and executive committee to meet less frequently than monthly with prior Secretary approval, provided they meet at least quarterly.

• Permits surviving credit unions in mergers to identify merging credit unions as divisions, branches, units, or other descriptive references, and requires network credit union advisory board members to sign confidentiality agreements.